Key Takeaways

• Home sales activity in Virginia remained sluggish, with sales levels declining for the fourth month in a row. There were 10,649 closed sales across the commonwealth in May, 66 fewer sales than a year ago, a 0.6% decrease.
• Despite lower sales levels, home prices continued to rise in most local markets. The median sales price in Virginia was $440,000 in May, up by $15,000 since last year, reflecting a 3.5% increase.
• Rising home prices continued to fuel an increase in sold dollar volume, despite fewer closed transactions. There was approximately $5.8 billion sold volume throughout Virginia in May. This is about $73 million more than the same time last year, a 1.3% increase.
• There were 23,137 active listings on the market across Virginia at the end of May. This represents 5,425 more listings than last year, which is a 30.6% jump in inventory levels.

Outlook

So far, the housing market in 2025 has been characterized by lower sales levels, higher inventory, and continued price growth. Here are some key trends to watch over the coming months:

• More sellers are listing their homes for sale across Virginia, leading to increased inventory levels. However, higher prices and looming economic uncertainty are likely to keep sales activity muted over the next few months.
• The mortgage rate trajectory is likely to be impacted by spillover effects from broader policy changes. The market expects the Federal Reserve to cut the federal funds rate in early fall. This could indirectly lower mortgage rates, though the decline, if any, would likely be modest and volatility will remain a factor.

You can view the full May 2025 Virginia Home Sales Report here.